Quarterly Profit | Volume 3, Issue 3

QUART E R LY P R O F I T MARCH 2016

INTRODUCING THE NEW DCS EXECUTIVES P.5

WHY THE VALUE OF THE CANADIAN DOLLAR IS SUCH A BIG DEAL P. 31

AN INSIDE LOOK AT DEGROOTE’S BAY STREET MIXER P. 9

THE SOCIAL MEDIA PROBLEM P. 25

VOLUME 3, ISSUE 3

CONTENTS 2 5 9 11 13

LETTER FROM THE EDITOR

INTRODUCING THE NEW DEGROOTE EXECUTIVES BAY STREET MIXER WHAT I LEARNED FROM KOBE BRYANT WHAT A SLOWING CHINA MEANS FOR US

15 17 19

SPORTS ANALYTICS

21

THE S FACTOR: BALMAIN X H&M

25 29 31

33 35

FINANCIAL FITNESS

RICH VS. POOR: SHOUD YOU HELP?

THE SOCIAL MEDIA PROBLEM MENTAL HEALTH WHY THE VALUE OF THE CANADIAN DOLLAR IS SUCH A BIG DEAL SUPER BOWL ADS AIESEC: EXPLORE YOUR WORLD

1 | Quarterly Profit | March 2016

Quarterly Profit Mar 2016 | Volume 3, Issue 3 EDITOR IN CHIEF Imran Dhalla MANAGING EDITORS Julia Dinh Andrew Kwast CREATIVE DIRECTOR Danielle Fraser DESIGNERS Xue Qin Lin Anduena Sertolli Jordan Flick WRITERS Joseph Cruz Marryiam Khan Krish Puri Andrew Foresi Hamza Mahmood Nicholas McFarlane Lauren Zylik Rachel Connell Joshua Xavier Georgie Demakos Balpreet Passi Nicholas Chui MARKETING DIRECTOR Ryan McNeely DIRECTOR OF OPERATIONS Courtney Smith VP CREATIVE Cory Bryck

Contact us at: magazine@degrootecommerce.ca Visit us online: http://issuu.com/quarterlyprofit DISCLAIMER // All photos or logos used without sourcing are used in compliance with the Fair Use Law - for not-for-profit educational purposes. In no way do we assume ownership or affiliation with any images seen.

If there are any questions or concerns, please contact us at: magazine@degrootecommerce.ca http://copyright.mcmaster.ca/Fair_Dealing

Letter from the Editor Hello DeGroote! First of all I’d like to thank all of you from the DeGroote community for your unparalleled support in getting the Quarterly Profit on the map. At the beginning of the year, our team set a target to make Quarterly Profit relevant to every DeGroote student on campus, and based on the response we have received, we have done exactly that! The premise of this issue has been consistent with the rest so far, we want the world to know the talent that we have at DeGroote. Our writers have been working hard every issue to bring to you the best publication possible, and that always been the QP way, always strive for the best!

This year, our writers stepped out of their comfort zones, attending numerous events, covering the DeGroote Accounting Association’s exclusive CPA night, and DeGroote’s very own Bay Street Mixer. We also spent our time advocating for DeGroote Impact’s 5 Days for the Homeless and in the process covered a wide array of topics such as issues regarding mental health, financial fitness and a number of sports exclusives you do not want to miss.

As I head out as the Editor in Chief of the Quarterly Profit, I would like to personally thank the DCS President Jennifer Mana, COO Jake Shipman and the rest of the DCS team who have supported us through and through! My advice to anybody who wants to get involved, step out of your comfort zone and try different things, you might just fall in love with what you’re doing, just like I did with the Quarterly Profit. Finally, a massive thank you to my team, especially my head of design, who has always managed to do justice to every issue we have published together.

If you do want to get involved, or have any ideas that might benefit us, please do reach out to me personally, or email us at magazine@ degrootecommerce.ca. We’d love to hear from you!

For the last time, thank you for all your support!

Cheers, Imran Dhalla, Editor in Chief

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What does a slowing

g China really mean?

Page 13

The DeGroote Commerce Society

CHEIF OPERATING OFFICER Jason Estriga

Welcoming the 2016 /2017 Executive Team

PRESIDENT Aaron Kimber

Hello DeGroote! I am thrilled to be taking on the role as President in the upcoming year. My inspiration to get involved in the DCS stems from my involvement with its respective associations. I have been involved with the McMaster Investment Council and the DeGroote Finance Association since my first year, and took on an executive position with the DFA this year. I’ve seen the way that the associations help students grow and achieve success: not only in myself, but in many of the students that have gone through them. In the upcoming year, we plan to build on what has been established by the school and the DCS, as well as implement a couple of new things. We are still working out the details with our member clubs and faculty, but I am very excited to see what we can bring to the table to benefit the students. My message to DeGroote is this: expect great things next year. There has been a lot of work going on behind the scenes, and our school has been changing for the better. You can expect that we will do everything in our power to make the 2017 Academic a great Profit one for| December DeGroote. 2015 7Year | Quarterly

My name is Jason Estriga and I am very honoured to be the going into the role of Chief Operating Officer(COO) within DeGroote Commerce Society (DCS) for the 2016/2017 year. My role as COO involves working with all 10 of the DCS’s committees to assist in reaching their individual goals for the upcoming year. My goal for the upcoming year is to not only to help the committees achieve their goals, but to increase overall student involvement throughout the DCS. I choose to get involved with the DCS because I wanted to be part of the success of the overall DCS vision while getting to implement my own ideas, leaving a legacy on the school. I want everyone to know I intend on using an open door policy, as a representative of the DCS, your ideas can be used for the benefit of the everyone. If you would like to share your ideas, questions, or concerns, feel free me through the DCS website or office. Let’s make a change for the better.

CHEIF FINANCIAL OFFICER Hemant Sud

Hello! My name is Hemant Sud, the incoming Chief Financial Officer (CFO) of the DCS. I’m extremely excited to work with all the amazing incoming executives this upcoming year. I along with my incoming team have numerous great ideas we would like to implement for the coming year. In terms of the finances for the DCS, we have a large budget for the conference ambassador program; I would like to see many more students utilize these resources available to them.

Students are able to receive up to 75% reimbursement for being a conference ambassador. In terms of reimbursement, I want to make the process as smooth as possible by revamping the current reimbursement forms to make them straightforward and effortless for all students to complete. I plan to work very closely with the outgoing CFO to accomplish these objectives. I was inspired to join the DCS when I joined the third year council this year, all the executives seemed like a supportive DCS family, which inspired me to join the DCS family. I’m really looking forward to the upcoming year, my message to the DeGroote community is to get involved outside of the classroom, there are plenty of opportunities here at DeGroote, take advantage of them.

VP INTERNAL Robbie McQuillan

Hello DeGroote! My name is Robbie and I will be the incoming Vice President Internal Relations for the DCS. My focus for the year ahead is to expand upon the foundation that has been put in place for the First Year Orientation Program.

The vision, time and energy that my predecessor invested into FYO allowed it to grow into the incredible initiative it was this year. I look forward to building upon all of the hard work that has already been done in order to continue growing the program so that future first year students have the same opportunity to be immersed into the faculty that first years were this school year. I also look forward to working closely with the DCS Year Reps to offer DeGroote students some awesome events! As the outgoing First Year Rep, I know that my time working with the DCS has just begun. Contributing to the DeGroote and leaving my mark on our community is a huge motivator to me. I love working with my classmates/colleagues to make our school its best! Finally, enjoy the final days of the school year and I look forward to working with you next year!

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VP HUMAN RESOURCES Tejasvi Kamath

Hello there! My name is Tejasvi and this year I will be part of the 2016/2017 DCS executive team as VP of Human Resources and Administration. Currently, I believe there isn’t enough of an awareness about leadership opportunities and some highly capable students aren’t able to showcase their abilities and further hone their skills.

I hope to increase student awareness of leadership positions within the DCS in order to attract the best talent at DeGroote which in turn will ensure the great success of all our events.

DCS has always been something close to my heart. I have loved every moment of my experience at DeGroote so far, and getting involved with the first year council was the first step. I am extremely excited to have the opportunity to help make the upcoming academic year a success! Getting involved with the DCS has only added to the fun, and I definitely encourage all commerce students to find one of the DCS teams, committees and/or clubs that resonates with them because there’s always something for everyone!

13 Quarterly Profit Profit || March December 7 || Quarterly 20162015

VP EXTERNAL George Calzaretto

Hi, my name is George Calzaretto and I am the incoming VP External for the DCS. Next year I am hoping to increase student body participation in conferences and competitions happening across Canada by increasing awareness of our conferences database as well as our Conference Ambassador Program. I am looking forward to creating more alumni events so that DeGroote students can really bolster their career networks outside of academia and engage more with the business community across the GTHA. Lastly, although still preliminary, I am planning to get the DCS involved with the fossil fuels divestment movement in which we would reject any sponsorship from companies that aren’t looking towards a more sustainable and/ or zero carbon future. I joined the DCS because I wanted to get more involved and help facilitate real positive change here at DeGroote. My advice for commerce students is to always look ahead and take career advice from anyone that is willing to share. It has gotten a lot harder for students in general to secure internships as well as full time jobs and it’s extremely important to take advantage of the networking opportunities offered in and outside of school as you never know where those connections may lead.

VP MARKETING

VP ACADEMIC

Stephanie Caines

Andrew Ramadori

Hi DeGroote! My name is Steph and I’m the incoming Vice President of Marketing and Communications for the DeGroote Commerce Society.

My role is to ensure you, the students, know exactly what is happening in the DCS and are informed about the events that interest you! My overall goal for the year is to increase reach of events and centralize communication so students do not have to go looking for events, the opportunities will be within their immediate reach. I have always been someone who enjoyed getting involved and I knew the moment I stepped foot onto campus that DCS was where I wanted to focus my extracurricular involvement. I’m excited for the opportunities this year will bring!

My name is Andrew Ramadori and I am currently on internship at ArcelorMittal Dofasco. I will be the VP Academic for the 2016/2017 school year, which involves acting as a liaison between the student body and DeGroote School of Business faculty.

Raising student awareness of the amazing resources our school offers, for personal and professional growth, is an area of focus. I feel students should have a diversified learning portfolio consisting of classroom learnings, professional development opportunities, experiential learning, and peer/mentor support.

Capitalizing on these resources, for both technical and soft skill development, becomes essential to align our students to the constantly changing business world. Coming back from internship as a Marketing Analyst, as well as previously being a teaching assistant for Commerce 2AB3 and 1AA3, has given me a unique perspective on our education. Entering my final year, I want to give back to the DeGroote community. I want to help students set themselves up for success and make an impact while at DeGroote!

Whether considering club involvement, seeking an internship, or going on exchange, get involved at DeGroote in some shape or form!

One DCS theme for the year revolved around the question, “What’s your legacy?”. I challenge students to get out of their comfort zone, make a difference, and live the DCS motto everyday | Quarterly | December 2015 through their14 actions andProfit decisions.

LUMINOUS AFFAIR Students had the opportunity to network with Toronto’s best employers, all in the core of the financial district. As an added bonus this year, the event was combined with the DeGroote MBA Alumni Night, allowing students to network with 100+ MBA alumni.

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BAY STREET MIXER

DeGroote’s largest annual student-run networking event

The National Club 303 Bay Street, Toronto

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What I Learned from Kobe Bryant

By Hamza Mahmood

Kobe Bryant’s retirement announcement sent the sports world into a frenzy, prompting messages of gratitude and appreciation to start pouring in from fans all around the world.

Some of Kobe’s early well-wishers included the likes of Lionel Messi, Magic Johnson, David Beckham, Roger Federer and Michael Jordan! While Kobe may not be recognized as the best to ever play the game of basketball, the respect he has received from his idols alone is a testament of his achievements on and off the court.

As a business student who is exactly a foot shorter than Kobe, I do not have much in common with the Mamba when it comes to athleticism or basketball acumen.

However, I am still very much intrigued and inspired by Kobe’s career and success. What speaks to me personally is his mentality, as well as the strategies that he has used

LESSON 1

Focus, commit and build a strong work ethic “I am ashamed to say that I was excited the day after his injury because I knew that there was no way that No. 8 (as former Laker point guard Tyronn Lue called him) would be the first to practice, if he would even be there at all.”

While players focus on displaying their talents under the bright lights of the arena, Kobe likes to put in the effort before the lights even come on. Kobe’s former teammate, Tyronn Lue, experienced Kobe’s unparalleled worth ethic first hand. Kobe was always the first person to reach the practice facility, every single day.

This infuriated Lue as he did not enjoy being outworked. When during a pre-season game, Kobe broke his wrist, Lue admittedly expressed excitement as he knew there was no way Kobe 11 | Quarterly Profit | March 2016

to motivate himself that can be used by any person in any walk of life. So, without further ado, here are the top three lessons that I have learned from Kobe Bryant.

would be there for practice the following day. The next day, as Lue walked through the training room, he became stricken with fear when he heard a ball bouncing. No, no, it couldn’t be! Yes, it could. Kobe was already there, drenched in sweat with a cast on his right arm and dribbling and shooting with his left. Success in any field is never simply the result of raw talent. It requires hard work which is something Kobe realized at a very young age. The sheer quantity of practice turned him into such a great player that he was drafted into the NBA right out of high school. When kids his age were out partying, Kobe was aware of his priorities and dedicated his time solely to his craft. Success is also not promised, but as human beings, it is our duty to give a 100% effort towards whatever goal we pursue. By not doing so, we are cheating ourselves out of our full potential and all that we can accomplish.

LESSON 2

Dealing with failure and adversity “It was an early turning point for me in being able to deal with adversity, deal with public scrutiny and self-doubt. At 18 years old, it was gut-check time.”

In the 1997 Western Conference Semifinals, rookie Kobe Bryant launched a series of airballs in overtime. The game was infamously lost and the Lakers walked off the court pale and dumbfounded. Many players, especially 18-year olds, would have been distraught and never recovered, but Kobe showed his mental toughness and took it as a challenge to make sure it never happened again. Fast-forward

LESSON 3 How to be an effective leader

“Being a leader, it’s the art of trying to find the balance, the right times with each individual and what they need at that moment. It requires looking outward as opposed to looking inside.”

Early on in his career, Kobe had issues with some of his teammates which mostly centered on the point that Kobe wanted everyone to work as hard as him. He would call out players on their lack of effort and go as far as publicly humiliating them. It was a style of leadership driven though fear, conflict and bullying. Kobe’s goal was to get the best out of his teammates but his strategies did not provide him with the desired results.

Every member on a team carries a unique set of skills and assets. It is the leader’s responsibility to recognize those skills and assets and utilize them in a manner which is

19 years and Kobe is revered as one of the greatest clutch players of all-time and it is because of his mentality and fearlessness. He’s not afraid to take any shot.

The only failure in life is when you decide to give up. Every individual faces hardship and adversity at some point, however, as long as you are willing to bounce back and keep trying you are never truly out of the picture.

Failure can also serve as a great teacher and reminder. Reflecting on your past mistakes and faults from time to time and using them as motivation is a very effective way to grow and improve. Past failures should not be revisited to fuel anger and rage, but should be used as a measuring stick to see how far you have come. Kobe Bryant has taught me to embrace failure because it is the final step before success.

most beneficial for the team. Kobe might have had championships to back his arguments but in order to win another one, he would have to change his approach.

After falling to the Celtics in the 2008 finals, Kobe realized the most important thing isn’t necessarily the individual skill you possess but it is about understanding others and what they may be going through. Always the one to lead by example, Kobe would now motivate, encourage and recognize his teammates. He wouldn’t do so by simply passing them the ball more often. Instead, he would try to communicate with them so that so that they can navigate through whatever issues they may be facing. His efforts paid off in glorious fashion as the Lakers won back-to-back titles in 2009 and 2010, making it a total of five rings for Kobe Bryant.

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W Sustained growth cannot be achieved without the investment of Chinese consumers to fuel the economy.

On January 7, 2016, the Shanghai Stock Exchange halts trading after just 29 minutes with a loss of 7%. A mechanism known as a “circuit breaker” kicks in to stem losses when a certain threshold is reached. Other major markets followed suit and posted their own steep losses. This event in itself was unique, but also served to highlight a deeper underlying problem: the Chinese economy is slowing down at a rapid pace. For many years China experienced unprecedented double digit growth, but in 2015 this growth was down to 7%. The concern 13 | Quarterly Profit | March 2016

is: would a transition to a slower more sustainable growth be hard or soft, and how disruptive would it be to other economies around the world?

China is a big force in the global economy. It is the second largest economy in the world and the second largest importer of goods and services. Since 2014, China has been the world’s leading trading nation and accounted for 17% of the world’s overall gross domestic product (GDP).

A faltering Chinese economy will directly or indirectly impact

almost every nation in the world.

In the months leading up to the January event, figures showed that a decline in manufacturing was accelerating, the Yuan was sliding, and the Shanghai Exchange was steadily recording losses – all signalling a slowing economy.

As manufacturing declined, so did Chinese imports of the commodities used to make these products. Global commodity prices, such as copper and aluminum, are under pressure from lower than expected sales, and countries heavily exposed to supplying China’s demand will

What A Slowing China Means For The Rest Of The World A 2016 Outlook

be hit the hardest. Commodity exports to China from other countries include 36% from Australia, 24% from Chile, 19% from Brazil, and 13% from Indonesia. Countries such as Germany and other European Union nations that provide China with manufacturing equipment and services will also feel a direct impact. A domino effect will also be felt by countries that trade little with China but supply goods and services to countries that are big importers to China. Even a portion of the world’s oversupply of oil can be attributed to China

as they must import all the oil that they consume. As manufacturing declines so does oil consumption.

Going forward into 2016, most economists are concerned with the weakening of an economy that was built largely on the credit market and massive government investment. The belief is that sustained growth cannot be achieved without the investment of Chinese consumers to fuel the economy. There is a concern that a faltering Chinese economy may lead to a loss of confidence in the global markets that could

lead to a global financial crisis, as was experienced in 2008. The consensus seems to be that a transition to slower sustainable growth will continue to pressure global markets throughout 2016.

Policies to watch for are interest rate cuts and relaxing of bank lending rules that could increase spending within the Chinese public sector. These steps may help to revitalize one of the most important economies in the world, which as of now, holds a very uncertain future.

Words by Lauren Zylik 14 | Quarterly Profit | March 2016

Financial Fitness Words by Joseph Cruz

“...it’s more important than ever to be financially literate” As business students, we are fortunate that part of our curriculum requires us to take courses that provide a solid understanding of how the finance world works. Although much of the topics discussed in the mandatory finance courses seem to be geared towards the corporate world, most of the material actually transcends through the different areas of finance, even in personal finance. Many of us would agree that finance classes aren’t the most fun, but I would say that they are probably the most important and most beneficial courses that you’ll ever take during your time at DeGroote.

You might disagree with that statement, but the fact of the matter is it’s more important than ever to be financially literate and have a good grasp of how to properly manage one’s finances. According to Statistics Canada, student debt is at an all time high, averaging mid- to high-$20,000 for new graduates while the average undergraduate tuition fee in Canada has risen by 20% during the last 5 years. These are numbers that cannot be ignored. Now, if you are one of the few who are fortunate enough to not carry any student loan, that does not mean this article isn’t for you. Increasing student debt is only one part of the equation. There is so much more to be done in order to be financially fit.

Financial literacy is such a broad and intimidating subject to cover because it consists of so many factors, which can get quite complicated and overwhelming. However, with the current economic realities that we’re facing as students, taking ownership of your finances is the first step in ensuring that you’re able to make the right decisions and reach your financial milestones on time. When we strictly talk numbers, 15 | Quarterly Profit | March 2016

it’s natural for most students to have a negative net worth, which simply means that you owe more than you own (liabilities > assets). As much as this is the sad truth for many, keep in mind that it’s only temporary. I think that many of those who choose to pursue a post secondary education would agree that it is essentially an investment decision in order to create better career opportunities in the hopes of eventually creating a positive return on investment (via higher earnings potential). The problem is when we start to think that it’s acceptable to postpone dealing with our finances while attending school, and only tackle it once we’re done and have a stable source of income. I think this is the main reason why so many new graduates nowadays find themselves stuck in a financial rut because of the lack of knowledge and poor management of their finances while still at school. With this in mind, here are some things you can do now to improve on your finances:

It’s all about maximizing your Net Worth – your assets

minus your liabilities equals your net worth. This number will help you understand your current financial situation and you can use it as a quantitative basis to determine what your financial goals are. You can start by creating your own personal balance sheet that outlines all your assets and liabilities, which will provide you with a detailed snapshot of your overall financial standing. Remember that liabilities hinder your net worth from increasing. For instance, for those looking into applying for a loan, always remember that most lenders will only look at your income because they want you to avoid thinking about the reducing effects of borrowing on your net worth.

Create a SIMPLE monthly budget and track your expenses – this is one of those things that are very easy to say

but quite hard to do. I think that the best way to go about creating your monthly budget is to start tracking the big and recurring expenses first and then go from there. Most people who try to budget every single item on their list of expenses end up feeling overwhelmed. Then, they are more likely to spend more time and effort creating the budget than following through with it. When it comes to personal budget, the simpler the better! If you don’t have time to sit and plan your budget every month or track your expenses daily, there are some free tools available that can make your life a little bit easier. Smartphone applications such as Mint.com allow users to link their banks accounts and other financial institutions so they can track their income, debt and spending habits. It has a variety of features such as monthly and weekly reports as well as an automated weekly budget that it generates based on a user’s account history. The only downside of using such service is that users are asked to link their personal bank accounts to a third party application, which some might consider to be a security issue.

have a credit limit of at least $2,500.00. This may not directly help improve your credit score but it will make your credit report a little more attractive. Furthermore, never treat credit as an additional source of funds and never borrow to improve your lifestyle!

If you’re on the other side of the spectrum and don’t have any type of credit under your name, then it’s time to consider applying for a credit card to get you started. Remember that the best strategy when using a credit card is to use it for purchases that you’re able to pay off immediately. If utilized properly, a credit card or a line of credit will help you build a strong credit score. In addition to that, there are some other extra benefits in having access to credit. Some people treat their credit as an easy access to funds during financial emergencies in addition to an emergency savings fund, while some use it for special features such as collecting points to save on future travel bookings. Before you apply for one, make sure to do your research and choose a type of credit that best fits your lifestyle and current income.

Get rid of your debt first and then start saving – I think

that this should be the general rule of thumb for everyone.

Ideally, it’s better to pay off your debt first before you start saving. Now it’s not so much that you shouldn’t have any type of savings at all. It’s good to at least have an emergency fund that can cover your basic expenses for a few months in case something financially debilitating happens. But in the grand scheme of things, it doesn’t really make sense to have money sitting in a savings account with an annual interest rate ranging from 0.5% for a basic savings account to 0.55% for a High Interest Savings Account while your credit card is charging you interest of 19% or more!

Reward yourself – Yes! Once in a while, it’s okay to treat yourself, but only if you’ve earned it! Have a designated

Start building your credit NOW – The reason why this cheat day at the end of every month as a way to recognize is so important is because a good credit will give you good rates which will ultimately save you money in the long run.

If you have student loans or balance on your credit card or line of credit, there are some steps you can take now to mitigate the effects it may have on your credit score. If you currently have a sizeable balance owing in your credit account, my advice is to only use it when absolutely necessary and to make sure that you’re at least paying off the monthly minimum payments. Once you have more income, pay the balance off as much and as fast as you can. The low minimum monthly payments that banks require is not to be nice to their clients, but to earn as much interest as possible from the balance owing. Another advice when using credit is to never have a balance more than half of your limit and to

all your hard work. Whether it’s a day out with friends, a spa day, or trying a new restaurant in town, this day is a way to incentivize and motivate you to be on top of your finances during the month. However, it’s important to stay reasonable and practical with how you treat yourself. Sometimes, it’s easy for us to justify splurging ourselves because we feel like we deserve it for working so hard. Remember to only do things that you can actually afford!

At the end of the day, financial fitness requires time, effort and a lot of patience. Remember that becoming financially fit does not happen over night. It is a step-by-step process and while it may seem slow and arduous at times, each step you take will only bring you closer to reaching your major financial milestones!

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SP RTS ANALYTICS Words by Krish Puri

Steph Curry with the Shot, Boy

By Aubrey “Drake” Graham After almost halfway into the 2014-15 NBA Season, reigning NBA MVP Stephen Curry is shooting over 45% from the field when his closest defender is 8 feet or more away from him at the time of his shot release. When a defender is within 7 feet, Steph hits half of his shots. When Mr. MVP’s defender is 3 feet away, he drains roughly 45% of shots. In 2014, Kevin Durant’s personal statistical analyst Justin Zormelo explained to the forward that when he takes two steps inside the 3-point arc from the left elbow, he would drain the jumper with incredible accuracy (65-70% of the time, depending on where the closest defender is and which arena he is playing in). Analysis like this helped him win the NBA MVP and Highest-Scoring Title. In 2010, a struggling Phoenix Suns team discovered during their pursuit for the much-desired eighth and final seed in the NBA Western Conference Playoffs, that when Channing Frye and Amar’e Stodemire are on the floor together, the team’s productivity sharply declined. This was revealed by a business school graduate who observed that neither player “was really good defensively, and neither was a particular good rebounder.” This graduate was hired by the organization to offer statistical insights into their playing style and how the team would

fair against opponents in the closely contested Western Conference.

Player tracking technologies, makes the aforementioned statistics possible, much like the Australian-based sports technology company Catapult Sports that engineers wearable player-tracking technology. The purpose of this technology is to analyze and assess athlete risk, physical condition, efficiency, and effort. Most recently the North Carolina Tar Heels Football program featured such technology, where the coaching staff requires players to wear tracking vests during practice in order to analyze player tendencies and assess effort and efficiency. Today, there are six cameras strategically situated in every NBA arena, courtesy of a company called SportsVU, for the very purpose of tracking each and every player’s movement.

This is all a result of the growing field of sports analytics. The field of study was popularized by the book, and subsequent mid-2000s movie of the same name “Moneyball”, when Oakland Athletics and Boston Red Sox gained a competitive advantage over fellow MLB opponents when they employed statisticians to analyze certain aspects of the game.

So how is it possible to make sense of player’s movements, statistics, and floor spacing, when to the average viewer a sport like basketball or hockey seems to be a collection of random events? While it may seem like the “luckiest team” (Duke University Basketball or the New England Patriots of the NFL) often comes out with the win in a closely contested matchup, sports, like everything else in life, is subject to the laws of physics.

Watching sports is actually much like playing a game of NBA 2K, FIFA, or even firstperson war/shooter game like Call of Duty or Halo. When you go to take a shot on goal in FIFA, you press “B” and angle your analog stick where you want the ball to go. The automation the videogame players see in the moments in-between pressing B and watching the ball land in the goal, or fly into the fake looking stands, is simply a visual automation.

The game already knows where the ball is headed directly after the player presses B thanks to the algorithm that the EA Sports coders created. Real life sports is very similar,

Stephen

in that Newton’s Laws of Motion determine the outcomes of certain player movement.

This is why tracing every movement made by a player, and analyzing it step by step in the film room, is so valuable. By understanding movement, analysts can, with incredible accuracy, predict the future. This is because physics already “knows” what’s going to happen.

The business of predicting the future is currently a multi-million dollar industry, and is all but guaranteed to be a multi-billion dollar industry inside the next 5 years.

Organizations much like Catapult Sports, SportsVU, and the Nate Silver-led 538 are revolutionizing the way in which sports is viewed, both on television and in-person.

One wonders what the next steps will be in predicting future events, both in and out of sports.

RICH

V.S.

POOR

SHOULD YOU HELP? Written By: Balpreet Passi It is tough to deny the inevitable truth that revolves around inequality amongst different countries around the world. We often think that as Canadians, living in one of the best countries in the world, we should help those in third world countries, who may be struggling to survive. Presumably, anyone that you ask will agree to this, which is great! However, if this topic is examined from an economic perspective, it is a very different question all together and might change your opinion!

Living in Canada, we have access to all kinds of resources, such as food, water, education, etc.

However, residents of less developed countries, such as Rwanda, struggle to gain access to these basic necessities. So, we think, "Well, shouldn't we help them?" The answer is "yes" but very often, people are mistaken about how to provide the most effective aid to these people. Additionally, we also fail to uncover the reasons behind why these less developed countries are in their current state.

The two most common methods of providing humanitarian assistance is either through financial aid or basic food aid. The average person will say that there is no issue in providing aid through other means, but in reality, the outcome could be dramatically different!

MONETARY AID First off, monetary aid can go a long way, but only if it is used wisely and effectively. Unfortunately, many developing countries have very corrupt governments in which they often keep the money for themselves rather than using it towards improving the nation on a whole. In this case, monetary aid is not as useful as one might think when he/she donates to a humanitarian organization.

FOOD AID If we look at the other solution, food aid, we might think that "hey, nothing can go wrong with that!" However, foreign supply of food can have a detrimental impact on local producers. After having a conversation with my International Trade Professor, Dr. Svetlana Demidova, I learned that food aid in which developed countries supply less developed countries with food, has its own consequences. Very often, local producers of developed countries go out of business because there are other cheaper options for people to make the same purchases when there is some sort of foreign supply available. Thus, as a result, causes a decrease in the income of those local 19 | Quarterly Profit | March 2016

producers. Additionally, the country supplying the particular food product will increase the prices for the local consumers because there is not enough to satisfy the demand of that particular good.

So, in both cases, consumers are worse off!

But, regardless of seeing the economic implications and consequences, helping less developed countries, you may still not be convinced as to why this may not be the best way to give to these communities, just like I wasn't! So, a solution to this could be that the governments should implement better social programs and focus on increasing the productivity of their economy. This can include things like improving health standards and focus more on the education system.

A solution to this could be that the governments should implement better social programs and focus on increasing the productivity of their economy.

Hence, it is important to see the implication of our actions as to how they may negatively affect someone else around the world. We may think we are doing the right thing, but it can backfire unknowingly. Regardless, there are always alternative methods as to how you can make a difference!

21 | Quarterly Profit | March 2016

WORDS // MARRYIAM KHAN

What would you do for your siblings? What would you not do for your siblings? Millennial fashion designer Olivier Rousteing spearheaded the 2015 Fall campaign for Balmain, giving a nod to the importance of sibling appreciation.

The Parisian fashion powerhouse became the 11th guest-designer to collaborate with H&M, with the goal of bringing Paris runway haute couture apparel to the masses.

Balmain x H&M 2016 Campaign

x

What would you do for your siblings?

What would you not do for your siblings?

Millennial fashion designer Olivier Rousteing spearheaded the 2015 Fall campaign for Balmain, giving a nod to the importance of sibling appreciation. The Parisian fashion powerhouse became the 11th guest-designer to collaborate with H&M, with the goal of bringing Paris runway haute couture apparel to the masses.

Rousteing’s motivation behind the campaign?

It was “the unique and unconditional love between siblings” that inspired his fall line of runway sequins and boldness. He elaborated further by discussing the strength, support and love that family members offer each other, aiming to carry the theme of family into the Balmain x H&M collaboration. The models featured for this campaign are at the top of the modeling industry- and they also happen

to be siblings, including Kylie and Kendall Jenner, Bella and Gigi Hadid, Joan and Erika Smalls, and Fernando and Armando Cabral.

On a larger scale, Balmain’s campaign reflects the changing attitudes of the Millennial generation when it comes to fashion and love. Millennials see the value in expressing themselves in clothes and in relationships.

This is a very empowered generation of individuals; more and more, Millennials are beginning to champion for the causes they believe in. There is also a strong focus on selfimprovement and personal development.

Most importantly, this is a generation adamant on accepting oneself, rather than seeking validation through society. This is evident as Millennials become increasingly critical of marketing that exploits insecurities.

The yearning to discover and connect with our most inner selves is not always a solitary

23 | Quarterly Profit | March 2016

The S Factor

The S Factor

act. Our siblings play a large role in helping us understand ourselves, and the world around us. We support each other, and help one another develop and realize our talents. We can be just as content playing video games with our siblings as we are talking about the possible collapse of the Chinese economy and its consequences for the Western world.

I consider myself lucky enough to share a very strong bond with my younger brother.

With him, I have the amazing opportunity to be able to express the ultimate height of my neurosis and my impressive amount of stability in the same sentence. Our highs and lows balance each other out in the most complementary way - the same way that a basketball team’s members are able to boost each other’s morale when needed. The added benefit is that siblings watch each other grow

up, and learn what really drives the other person. This is something that people in love have to do from scratch. For siblings, there is no other choice but to grow together when they are young. Or at least until they outgrow each other.

In essence, what Balmain is doing is right when it comes to celebrating sibling love.

The product of this brand becomes attractive when it is based on capturing such a broad definition of love. Olivier Rousteing successfully channeled the fundamentals of sibling relationships, through the materials and clothing designs of his collaboration with H&M. The mainly glittery satin and gold prints embody the vigorous and dynamic chemistry between siblings, and express that sibling love is extravagant and hard to ignore. x

STATE OF MIND

THE S OCIAL MEDIA PROBLEM Social media and smart technology really started to take flight at the turn of the century.

In the short time since, it has become especially easy for an individual to post virtually anything on the world-wide-web and leave their mark on society, be it for positive or negative reasons.

The Millennial Generation was the most was drafted. affected by this as many of them entered SOM: What are your thoughts on this high school already ingrained with social incident and how does this relate to the media and by the time they graduated average college student? from college, they left an eight-year trail of content for any employer to search and make RO: The incident shows how anything an assessment of their character. For those written on social media can be taken out of young individuals that do not have the proper context and come back to bite you. Every guidance or direction in managing what they time you press ‘send’ on a social media post post online, it is all too or a text message you common to see that very lose ownership of that same content come back What society failed to realize post or message but you and potentially hurt retain responsibility for was that in the search for ‘15 them with regard to it. Permanent storage minutes of fame’, individual applications for college, of the content you send scholarships, internships impacts everyone from privacy was disregarded and full-time jobs. college students to senior and the long-term effects of citizens. advertising one’s life were not Everything you say State of Mind recently had the privilege digitally can be taken into consideration. to speak with Ryan discovered, we created Ozonian, the Co-Founder Cyber Dust to solve that (along with Mark problem.

Cuban) & CEO of Cyber Dust, on the topic of ‘Millennials and The Social Media Problem’.

SOM: Why is social media so often taken out (Ryan was recently honored as one of Forbes of context without benefit of the doubt given ‘30 under 30’ in the Sector of Consumer to the sender?

Tech).

RO: Because people want to create headlines A high profile example is that of recently and stories. Ratings are built on drama. So if drafted L.A. Laker, Larry Nance Jr., who someone can twist something you wrote to tweeted disparaging remarks of teammate make it more dramatic they will. If someone Kobe Bryant regarding his 2003 sexual assault is trying to gain something from you, they’ll investigation. Although those remarks were take whatever you said out of context for written when he was early in his time at their own advantage. You have no idea who Wyoming College, they came to light once he is going to believe what at that point. That’s a 25 | Quarterly Profit | March 2016

shitty situation to be in. You might as well not put yourself there in the first place.

But situations like the one above can affect everyone. For example, many of today’s Millennials, will one day consider a career in politics.

With the recent Republican National Debate behind us, imagine if every candidate and journalist started bringing up content that these Millennial politicians released into the cyber-verse when they were high-schoolers or in college? It would be reality TV at its worst with campaigns being smeared and potentially destroyed before they even take off. This would extend to individuals looking to be elevated to senior management or C-level positions who have extensive background checks conducted. An errant tweet or Facebook post made in someone’s twenties could be held against them and be the difference between being selected or rejected over another

on social media?

If so, how did you manage it?

Millennials don’t want to be tracked constantly but they still want to share their lives with their friends and family.

They also want things to be convenient and quick. candidate. Finally, imagine a show like Shark Tank where an inventor spends his blood, sweat, tears putting his heart, soul, time, money and resources into a product he believes in. Upon looking for funding, potential investors do a background check and decide to pass on his invention because they have already made a character assessment of him.

SOM: As a society, have we given away our privacy and if so, is it possible to reclaim it?

RO: The amount of data and content tracking is growing.

You don’t have any idea who is doing what with all that info you enter into your computer or

device. We are definitely giving up a lot of our privacy without realizing it.

In order to reclaim it you must first understand that it’s a problem and then step-by-step consciously use technologies like Cyber Dust that help you stay in control of your privacy. As individuals we have to do as much as we can to protect ourselves. We have to be conscious of what’s being tracked and who is tracking us. That’s the first step.

SOM: Looking at your own personal and professional trajectories postcollege, did you face any issues with respect to how you managed your online activities, specifically

RO: I didn’t face any specific issues but I’ve seen friends in situations where they may or may not have gotten a job based on what was on their social profiles.

Every company these days will Google, Facebook, Twitter search, etc. you.

What lives there will forever become your first impression.

What you said three years ago may not be who you are today.

So again, it’s about minimizing your digital footprint.

SOM: What is the future of social media for Millennials? Talk to me about the role of a ‘Data Scientist?’

RO: Millennials don’t want to be tracked constantly but they still want to share their lives with their friends and family. They also want things to be convenient and quick.

We will see a lot of rising technologies that cater to those points.

26 | Quarterly Profit | March 2016

STATE OF MIND Cyber Dust is one of them.

RO: Understand that In the very near future, everything you share and analytics will be integrated text is a representation of into social media platforms you. If you don’t want all to the extent that computer that information you share algorithms know more daily to constantly be a direct about you than your actual reflection of who you are connections. With all the data then be smart about which Facebook/Snapchat/Twitter/ platforms and applications etc. collects, you are now you use. You never know seeing products follow you what a potential employer around on social websites, will think about what you differentiating from the core wrote that’s publicly saved value prop of the social and displayed somewhere. network – connecting with You could be the hardest friends. As a result, data worker on the planet, but if scientists are being sought you post a photo of yourself after at a higher demand with your friends partying, a daily. The role of a data potential employer may think scientist is being able to all you do is party. Do you perform cohort analysis to really want that to have an really find the valuable data impact on your career? on what people’s interests/ dislikes are. A data scientist will analyze Cyber Dust is the ultimate data to get the most platform to stay in control of out of their users for the sake of their your privacy. You can message business benefitting. freely without worrying about We don’t track an your messages coming back to individual’s data on bite you.

Cyber Dust. We want people to know they are safe while using Cyber Dust that’s why our user base continues to grow.

SOM: How does Cyber Dust address the issues addressed SOM: What advice would above? you give to current high school & college students and RO: Cyber Dust is the recent graduates in regards ultimate platform to stay to managing their online in control of your privacy. activities and protecting their You can message freely identity, brand, reputation without worrying about your and privacy? messages coming back to bite you. It breeds honest and

“

”

27 | Quarterly Profit | March 2016

untraceable communication just like a face-to-face conversation. You can also share content to many at once without worrying that it will live forever. There are no backend servers collecting data on you, advertisers can’t find out the last thing you’ve looked at, etc.

Cyber Dust also has an advantage in that it can be used to expand user engagement. You can exchange messages with Cyber Dust users. You can ask for responses. What makes Cyber Dust very unique is that the messages you receive or send are truly ephemeral. Once they disappear they are gone for good. Not even the NSA can retrieve them. The importance of this feature is that privacy leads to honesty and greater engagement.

People will open up.

They are more willing to connect to friends, brands, and others. That creates a stronger connections.

Cyber Dust users use the platform as a way to connect with others in an honest environment. Cyber Dust users use the platform as a way to be reminded of the amazing content happening every day that they didn’t have time to see on a friend’s Facebook or Twitter timeline.

There is no other platform

where you can blast out stories, links and/or messages to millions of users and respond to them individually.

There is no 140 character limit. Unlike Facebook and Twitter, you reach 100 percent of your followers.

Unlike Snapchat and Instagram, you can add links to messages sent to all your followers. There is no limit on the number of people you can reach. You can customize text, pictures and videos with live links.

SOM: What was the impetus forWhat w Dust in a market already saturated with social media platforms?

RO: There is no other social platform that doesn’t permanently store your content and data. On Cyber Dust you can be completely private without worry. Here are the problems with Twitter and Snapchat for Millennials and Brands:

TWITTER: Cyber Dust is like Twitter with users following their chosen content sources. The problems with Twitter are several. First they use a timeline approach. Which means when you miss a tweet, you have missed it. Which leads to the very annoying practice of having to post tweets multiple times. Twitter also fails because of its troll problem. Everyone has to be scared of the wrong troll or being the wrong troll.

Anything you post can be traced back to you. And used out of context at any time.

This is the most nerve-racking thing that Millennials should be aware of.

SNAPCHAT: Snapchat benefits from the fact that like Cyber Dust, the messages are inline and from a source. In other words, they are there in the app until you open it. Or in our case, you must open the message within

24 hours, which in Cyber Dust leads to your followers seeing every message.

With both Cyber Dust and Snapchat we can send both pictures and videos to all followers.

Where Snapchat fails miserably is that you have no ability to send text based content simultaneously to all your followers. Even worse, you can’t send a link to any external content. Cyber Dust does not have those limitations.

For those interested in learning more about Cyber Dust and/or the topic of responsible social media, you can reach out to Ryan on Cyber Dust at +ryanozo or STATE OF MIND’s very own Krishna C. Nadella at +kcnadella.

“Every life is a book…make yours a bestseller!”

K R I S H NA C . NA D E L L A Cyber Dust: +kcnadella www.facebook.com/SOMBMCC Twitter: SOMBMCC https://www.linkedin.com/in/kcnadell http://www.bmcc.cuny.edu/stateofmind/ R YA N O Z O N I A N Co-Founder & CEO, Cyber Dust

28 | Quarterly Profit | March 2016

Mental ways to cope with the lingering heartache of the year before. My mother passed away last term, and in the midst of dropping courses, taking a bereavement leave, constant attempts to distract myself with work and partying - yet still feeling like it had been ages since I’d seen my friends - the feeling of being sad just wouldn’t shake off. Many of us know the guilt associated with wasting our unaccomplished New Year’s resolutions all too well. We all feel like we should’ve done something by now, and we should be heading into April fearless and motivated. But for whatever reason, we feel defeated. I don’t know your situation as you read this, but The new year calls for new I do know that through the dreams, new goals, new waves of your happy and sad disappointments and new paradox, there is hope. No Words // Rachel Connell You have an anxious chill in your stomach as you’re sitting in one of the toughest classes during the final term of the school year. The pressure is on; internship applications are closing soon, you have no idea what your plan is after graduation, and the pressures of your social, academic and professional lives never seem to mesh in the way you wished they would. There’s a cloud over your head and you’ve weighed all consequences of giving up.

If you, like me, have struggled with reflecting on where 2016 is headed and felt like you’ve let yourself down, please know that you’re not alone.

29 | Quarterly Profit | March 2016

matter how big or how small your problems may seem, feel, or be - it’s not too late.

How do you take on the term and the new year, and drive yourself to accomplish all of the things you said that you would? You take the curveballs, and you throw them back. It is up to you to take control of the cloud over your head, and learn to love the rain. Be inspired by those heavy winds, and let that silly little storm drive you into finishing off strong.

I myself have struggled to find that place of balance between the hustle and bustle of life with the lingering weight of losing a loved one. I’ve felt the mental health dilemmas that so many of my peers face every day, and I never imagined that it would happen to me either. You’re

"Sadness does not always come anxiety doesn’t have to be visib everyone talks

Health not always born with it, and you don’t always see it coming.

It’s hushed in the shadows of campus life, between the bookcases of panic attacks in Thode and 2-week line-ups to talk to a therapist. It’s deep in the fear we all face when admitting something’s wrong, and left with us as we try to close our eyes to sleep at night. It’s an upward fight that comes and goes, but it’s a fight you can win.

Mental health awareness is on the rise at schools across the country. We’re beginning to speak out, but the fancy campaigns and #BellLetsTalk hashtags can only go so far. I lost my mother this year, and I know that no matter how much support surrounds you, it can feel like it’s not enough.

There are aspects of your life

you won’t be able to change and helpless moments where you long for people that you’ll never see again. It’s okay to let yourself cry, to take breaks, and do things that distract your mind - but be aware for when your distractions become an excuse to avoid your feelings.

Breathe. Not just for a quick second, breathe and focus on the fact that you’re here, living.

Sadness does not always come in the form of a broken smile, anxiety doesn’t have to be visible, and stress is not something everyone talks about openly. There will be times when it’s up to you to take control. With all of the weight of the world, it may be up to you to carry it; to carry yourself. But you are capable. A failed test, grade,

e in the form of a broken smile, ble, and stress is not something about openly."

term, or even year of your life, won’t stop your potential to be whoever you dream of becoming. A fight with your boyfriend, roommates or parents won’t take away from their unconditional love, and you will have support whether it’s standing in front of you or waiting quietly in your blind spot.

Time is such a funny thing, and this new year may not bring a new you, a new life, or a new mental stability, but it could bring new chances.

New chances to try again, new reasons to trust yourself and new motivation to be brighter than the dark clouds over your head. Whether it’s a new year, new month, new week, or new day. You can do this. It’s never too late to finish off strong.

30 | Quarterly Profit | March 2016

In the past, the Canadian dollar has always been teeter-

ing around the same value as the American dollar, but in recent weeks, the Canadian dollar has plummeted to a low of $0.69 USD. Besides the fact that imported items will be more expensive, the mass population still asks the question, “What exactly does this mean?” The value of currency is a very grey area to most because unless someone is directly related to the currency market, they do not feel the impact of a lower value dollar right away. In fact, the reason for which the value of the Canadian dollar is so low goes much deeper than the reasons people perceive it to be.

One contributor to the de-valuing of the dollar is because the Canadian government is putting too much money into the economy. Like any resource, the more of it there is in circulation, the less buying value it has. Since the government is creating so much money and putting it into circulation, the value of the dollar has decreased. That being said, this aspect is a fairly insignificant contributor to the de-valuing of the dollar, as there are more economic factors at play here than simply a surplus in production.

The major contributor to the downfall of the Canadian dollar is the change in the current price of

“...the Canadian government is putting too much money into the economy.”

31 | Quarterly Profit | March 2016

gas. The price of crude oil directly correlates with the loonie since it is a commodity-sensitive currency. This relation is so punctual because 10% of Canada’s earnings through foreign exchange are through the selling of crude oil mainly to the Unites States. 97% of Canada’s oil exports are to America, which creates a volumetric flow of cash into the Canadian economy, as well as having impact on the loonie. Therefore, Canada’s economy is able to receive more money, thus raising the value of the Canadian dollar in relation to the American dollar. This is a critical reason as to why the value of the Canadian dollar is very similar to the American dollar, and why as of late, the value of the Canadian dollar has dropped immensely.

Due to the sensitivity of the oil/CAD relationship, the new price of oil is impacting the Canadian economy in a big way. This will only create negative ramifications to those living in Canada by restricting their funds both internationally and domestically. Already, Canadian residences are heeding caution when considering taking a vacation in American places because the conversion rates have skyrocketed; it is to believe that this lack of tourism will put a dent in America’s tourist income, but will improve Canada’s

tourist income since the American dollar goes much further now than ever before. This indifference could be a pivotal change in the relationship between Canada and America as it will be a direct effect as to how both countries receive income from the other.

The value of a country’s currency plays a huge role in how well the country is doing economically.

Granted, Canada is fairly economically stable and the only reason its currency is doing so poorly is because of a commodity that it exports. Due to this drop, Canada is perceived to have a terrible economy in relation to other countries. This is very detrimental to Canada because this change in socio-economic status could make the country’s trading partners nervous as to how much lower the value of the loonie can go. This will lead to Canada receiving fewer imports, which will limit a consumer’s ability to buy certain brands of items. So if everyday people may not understand why their favourite brand of cereal is not available in stores anymore, upon further analysis, they will discover that it is rooted back to the drop of the loonie. The correlation between the Canadian dollar and the imported goods are the most tightly connected relationships within the economic industry.

Therefore, no matter how well a country’s economy is doing, the value of their currency is definitive proof as to whether or not the country is truly doing well. This is evident in places like Kuwait and Zambia; one American dollar is the equivalent to 11.25 Zambian Kwacha where in relation to Kuwait, one American dollar is 0.302 Kuwaiti Dinar. Based off this data, we can conclude that in an economic sense, Zambia is doing poorly, whereas Kuwait is much more prosperous than America. So as displayed, the value of the Canadian dollar is an extremely important aspect for the Canadian economy because of the huge spectrum of economic factors it affects. As aforementioned, the value of the dollar affects the imports, exports, tourism, and overall value of a country and since Canada’s dollar has dropped to as low as $0.69 USD, it can only mean economy-harming effects to come.

Work Cited 1. Brown, K. January 19, 2016, “How & Why Oil Impacts The Canadian Dollar (CAD)” Retrieved from http://www.investopedia.com/articles/investing/021315/how-why-oil-impacts-canadian-dollar-cad. asp

Words | Joshua Xavier

Why the Value of the Canadian Dollar is Such a Big Deal 32 | Quarterly Profit | March 2016

SUPER BOWL ADs $4.5 Million was a Bargain Words by Nicholas McFarlane

After a hard day’s work, regional sales manager, Ian Rappaport walks into a local bar in Manhattan. He is greeted by a beautiful woman who offers to buy him a Bud Light and she asks, “Are you up for whatever happens next?” Without hesitation, Ian says yes.

be, he can throw it out the window of his VIP party bus. In a night where he rode an elevator with Don Cheadle and a llama and played a game of Ping-Pong with Arnold Schwarzenegger which miraculously turned into a live performance by One Republic, Ian earned his 15 minutes of fame. Okay so it didn’t work out with the girl, but can you really feel bad for the guy?

Unaware of the night’s proceedings, Ian just volunteered to star in Bud Light’s 2014 Super Bowl ad campaign. Now put yourself in Ian’s shoes. He must be thinking- wow, I am really on my game tonight. Without even saying a word, he seemingly has a second date in the bag. Whatever his next expectation may

As you read Ian’s story, you may ask yourself, does this commercial really make me want to buy beer? Your first instinct- probably not, but the numbers suggest otherwise.

Bud Super Bowl Ads 2011-2014

Year

Number of Acting/ Increase in Cost/30 Minutes Production Total US Sales from second Ad* Aired* Costs* Annual Cost* Super Bowl Ad*

2011 2012 2013 2014

$3.50M $3.80M $4.00M $4.50M

2 Minutes 2 Minutes 2 Minutes 2 Minutes

$5.00M $5.50M $6.00M $7.00M

$19.00M $20.70M $22.00M $25.00M

$31.63M $32.06M $32.49M $32.9\M

($3.00M of which went to Arnold)

Total Cost of Ads Average Annual WACC 2011 -2014** 2011 - 2014* $86.70M

7%

Notes: *Values in USD **Sourced from Anheuser-Busch Annual 10-K Reports

Despite rising costs, Bud Light wagered $4.5 million in 2014 and won the jackpot.

After accounting for acting and production expenses, the net present value of the four year project is $37.78 million. Adjusting for inflation, Bud Light surpassed their breakeven point by 68,690,909 cans of beer.

According to Wes Hartmann, Marketing Professor at Stanford University, the average payback period for Super Bowl ads is 6 weeks.

In the 8 weeks following the big game, Super Bowl ads increase gross revenue by 10%.

The effectiveness of Super Bowl commercials is staggering given low consumer tolerance for advertisements. Harvard Marketing professors, Raymond Bauer and Stephen Greysor, studied the relationship between ad exposure and brain stimulus on 750 subjects and found humans remember an average of 12 commercials a day. Of those 12, an average of 3 create a negative impression.

Effectively with 9 viable opportunities, consumer attention has become one of the most expensive and scarce commodities on the planet. For Super Bowl 50, 30 second slots are $5 million, marking a 75% increase over the last decade.

Alike many Super Bowl advertisers, Bud Light has maintained a high level of profitability, but sales have increased at a declining rate, while costs have steadily risen. With the break-even point looming ahead, how can promoters continue to increase their bottom line?

Lower Costs

Advertisers cannot change the price of ad slots, but they can lower production expenses.

Low-cost leaders like Doritos and PepsiCo have decided to do this by crowdsourcing commercialized content.

“Our bet was we felt consumers could create ads which could go up against Madison Avenue and 10 years later, 5 of our ads have been voted #1 by USA Today’s consumer poll” says Ram Krishnan, CMO of FritoLay North America. Over the last decade, Frito-Lay has launched the Doritos’ Crash the Super Bowl program and received more than 30,000 submissions. PepsiCo, among others, have achieved similar success through crowdsourcing. It has proven to be an insightful exercise to learn what consumers want and how to grab their attention. As the cost of producing TV ads rise well into the 7 figures, crowdsourcing has become a very lucrative marketing alternative.

Diversification Gradually moving over working capital to the online space could prove effective.

In the world of ad blockers and firewalls, there is still money to be made in online advertising. In 2013, Oreo’s social media blast on Twitter generated more profit than its primetime Super Bowl commercial. Social media advertising is cost effective and may be increasingly favoured in the future to subsidize diminishing returns from television.

To the advertisers on Super Bowl Sunday, good luck and to viewers, the search for the next Ian Rappaport begins. May the odds be ever in your favour.

Explore Your World Words by Nicholas Chui

Have you ever wanted to travel with a purpose? Not in the sense of getting to sightsee or shop, but to immerse yourself in culture, make an impact, and develop yourself. That seems like a broad concept, but going overseas with this mindset can change your life. Just last year, 24,000 students took the plunge to go on an exchange to make an impact on the world. They did so through opportunities like spreading cultural awareness to residents of developing countries and providing financial support to struggling NGOs. Now, how did they do this? They did it through AIESEC.

AIESEC is the largest student-run organization in the world that facilitates cross-cultural exchange in over 125 countries, in the form of volunteering and internships. It was started after the Second World War by a group of students who did not want another global catastrophe to happen again, and thought that it could be achieved by empowering youths to make a difference on a global scale. So what makes AIESEC different, and how does it apply to you?

GLOBAL NETWORK Not only are there many opportunities across the world, but it means that, when on exchange, you will work with members from many different countries. Not only can you immerse yourself in the country you’re visiting, but you will also have the chance to learn from others on the same journey as you.

FLEXIBILITY As students, we are constrained by time. At the same time, we want to look for experiences that are meaningful and have longevity. The volunteer experiences that are provided can range from several weeks to four months, which is perfect for the summer break we have in school.

N

WE

S

SELF-DIRECTION

Developing yourself as a leader is not spoon fed to you – you must make decisions yourself. By opening up to different opportunities and moving through thick and thin, you will come out of your AIESEC experience as a global citizen.

Arches National Park, United States

These are only a few of the benefits that you will walk away with from an AIESEC exchange. The biggest thing that AIESEC can provide you with is the opportunity to understand the realities of the cultures from across the world. By going through these experiences, it will develop you into a worldly, responsible, sustainable leader – and that’s exactly what the world needs right now. So don’t wait – visit aiesec.ca today explore your world with AIESEC.

Marketing Information Technology Teaching Business Administration > > > oGIP A Global Internship Programme (GIP) provides Paid Internship Program Long Term (3 months to 18 months) opportunities for young people to gain cross-cultural professional development through work placements Develop Professionally abroad.

Cultural Understanding Literacy Environment Social Entrepreneurship > > > oGCDP Volunteer Internship Program Short Term (6 to 8 weeks) Directly Impact Communities

A Global Community Development Programme (GCDP) provides opportunities for young people to create direct positive impact through an international volunteer experience abroad.

Insta

aiesecmcmaster

My name is Andrew Foresi, and I am a 2nd year Business student and have been a Research Analyst for the McMaster Investment Council for two years.

A

fter graduating from high school, I recognized the importance of being involved outside of the classroom not only for the on-paper benefits, but also for the opportunity to expand upon my interests and surround myself with people who are enthusiastic about making my time at McMaster as enjoyable as possible.

When I originally reached out to the MACIC in September

37 | Quarterly Profit | March 2016

of 2014, it was evident that I was a student with little to no tangible experiences to show for my interests in financial markets. When I was given the opportunity to interview with some of the current members, I quickly realized that most of them were once in the same position as I was.

They made sure that as a member of the McMaster Investment Council I would be able to learn more of the technical, hands-on skills

that employers are looking for come time when I begin looking for summer positions or full-time jobs.

Many of the members that I had first interviewed with are now holding executive positions within the club, have used what they have learned to find summer and full-time positions in Finance, and continue to offer their guidance when it comes to educating new and current members.

McMaster Investment Council As a member of the McMaster Investment Council, you will learn how to do the following:

For more information about the McMaster Investment Council, please visit our website or contact us by the email address listed below.

● Develop a well-rounded and effective investment strategy ● Create technical valuations of companies that show positive investment opportunities ● Create or expand your current presentation skills by presenting your findings to the members of the club ● Learn how to leverage your time with the club to network and find positions during summers and after graduation

We are always looking for new members who are interested in expanding their technical knowledge and are looking for a good way to add to their educational experience.

Andrew Foresi, 2nd Year Research Analyst at the McMaster Investment Council Website: www.mac-ic.ca E-mail: info@mac-ic.ca

38 | Quarterly Profit | March 2016

Hamitlon DeLight Festival February 2016